1. Innovation Incubators JamilAlkhatib 1

3. Presentation Outline What is Incubation? History of Incubation Incubators Objectives Incubators Design Incubator Location and Infrastructure Incubators Services Income Models of Incubators Incubators Management Incubators Quality System Examples 3

4. “Incubation is one of the single most important global innovations of the 21st Century…” Jiang Zemin Chinese President 1993-2003

5. What is Incubation? 5

6. Incubation The physical location where the incubation process take place Offers defined set of services to individuals or small companies 6 Incubation is a process which tends to be activated whenever there is a need to support entrepreneurs in developing their own business. (Source: EBN European Business Innovation Centers Network) Incubator

7. General Incubator System

8. History of Incubation 8

9. History of Incubation Concept 9 * www.mancusogroup.com

10. Geographic Distribution of Incubators 10

11. Incubators Objectives 11

12. Startups status 66% of new startups in the US still in existence 2 years after their birth 44% were still in existence 4 years after 12 Source: Survival & Longevity in the Business Employment Dynamics Database" Amy E. Knaup, Monthly Labor Review, (May05)

13. Why Innovation Incubation? Lack of experience Lack of management skills Lack of professional networking Lack of focus on business Lack of investment chances Lack of lack of exposure to experts and support programs Lack of proper work environment for innovation Lack of proper technical infrastructure (labs, IT tools, etc.) 13

15. Process

16. Partnerships

17. Prosperity

19. Projects

20. Property

21. Infrastructure

22. InvestmentLack of CapitalLack of Skills Viable Business “Valley of Death”

23. Innovations Life Cycle and Incubators 15

24. Incubators different Roles 16

25. Incubators Role in the Economy Creating jobs and wealth Building or accelerating growth of local industry clusters Business creation and retention Foster innovation culture within the community Enhance links between universities and businesses 17

26. Innovators and Entrepreneurs Accelerate the development of new technologies Technology commercialization Access to investment opportunities Maximize the probability of success of startups by reducing risks increasing knowledge Accessing investment opportunities 18

27. Large companies Identifying potential spin-out business opportunities Access to innvations Foster innovation culture Risk minimization of new technologies Isolate highly innovative projects (Spin-out) 19

28. Investors and VCs Support small firms with high growth potential Identify investment opportunities Risk Minimization and Increase the return on investment opportunities through well screened and assessed Technology Startups 20

29. Incubators Design 21

30. Before we start Incubator objective must be clearly defined The Incubator Model has to be selected 22

31. Incubators’ Models 23

32. Implementation Plan

33. Incubation Process and Services 25 Source: EBN : The Smart Guide to Innovation-Based Incubators (IBI) Feb 2010

34. Incubator Location 26

36. Close to Universities & Research centers

37. Close to International Technology Companies concentration area

38. In Accessible area for most Cities

40. Be suitable for work day & night

41. Support ease of interactionSample floor plan

42. Incubators Services 29

43. Main Services Shared Internet & Facilities Office Space & Infrastructure Entrepreneurs Networking / Experience Exchange Access to Sources of Funds Mentoring / Training

44. Incubation Process and Services 31 Source: EBN : The Smart Guide to Innovation-Based Incubators (IBI) Feb 2010

45. Pre-Incubation Services 32 Source: EBN : The Smart Guide to Innovation-Based Incubators (IBI) Feb 2010

46. Incubation Services 33 Source: EBN : The Smart Guide to Innovation-Based Incubators (IBI) Feb 2010

47. Income Models of Incubators 34

48. General Categories of Expenses 35 Source: EBN : The Smart Guide to Innovation-Based Incubators (IBI) Feb 2010

49. Income (Rental Model) 36

50. Income (Success Sharing Model) 37

51. Other Income Sources 38 Source: EBN : The Smart Guide to Innovation-Based Incubators (IBI) Feb 2010

52. Incubator Management 39

53. Incubators’ Staff Incubators have very small staffs Role of key people provide: Guidance Monitoring Evaluation Suggestions and transform ideas into successful businesses Incubator size (No. of employees) Source : EBN observatory report

54. Incubator Manager Dynamic manager Must be entrepreneurs in their own incubator Business expertise Shared Resources utilization Management consulting services experience Role attracting the right tenants enforcing an appropriate set of operational rules assisting the tenants as their businesses develop, understand problems facing a tenant, Business plan…… Locating sources of Capital Encourages networking (Internally and Externally) Source: A Business Incubator: Operating Environment and Measurement of Economic and Fiscal Impacts, Deborah M. Markley and Kevin T. McNamara

55. Incubators Quality System and Benchmarking 42

56. Measures The success of any incubator must be evaluated in relation to its objective General measures can be: Jobs created (Quantity & Quality) No. of tenants and graduates No. of product innovation No. of new business starts Success rates of incubator firms Impact on local development (benefit/cost analysis)

57. Quality System European Business Innovation Centres Network (EBN) Mission Organisation Services Performance Quality and measures recording

58. Examples of Incubators and Networks 45

59. 46 Imperial Innovations Group

61. EBN is now the leading non-governmental pan-European BIC network

62. Over 240 members in EBN including 155 BICs full members and 75 associate members in the 27 E.U. Member states and in 11 other countries (Central and Eastern Europe, Turkey, Canada, USA, Egypt, China…).

64. Thank you for your attention JamilAlkhatib, MSc. khatib@ieee.org 49